Facility Asset Development
Continued Study Board of Education Meeting November 6, 2008
Background
State and District Budgets for 2008-09, 2009-10, and beyond projected deficits
State indicates a shortfall in this year’s budget of $10 Billion…up from $3 Billion at state adoption (will cause mid-year cuts) Mid-Year Cuts forecasted for education at $4.5 Billion, projected cut for SCUSD…$5.5million Projections for State Deficit could grow to $25 Billion in 2009-10 District shortfall for 2009-10 with no Cola projected from State…$7-10 million…with additional state reductions that are now being projected (15%)…twice that or more!
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Background
SCUSD cut $20.4 million for 2008-09 SCUSD has cut $90.4 million in the past seven years We must plan now for the fiscal reality of the next several years We have adjusted in many areas for declining enrollment and insufficient budgets…we have not adjusted for facilities
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How do we compare to local districts?
We each receive approximately the same general fund dollars per student…. Sacramento City USD** San Juan USD* Stockton USD* Elk Grove USD* 45k students-86 school sites 40k students-61 school sites 39k students-44 school sites 62k students-58 school sites
*non-Charter ** includes Charter schools housed in SCUSD site
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How do we compare to other large districts?
Santa Ana USD San Bernardino Fresno USD San Jose USD Pomona USD 55k students-54 school sites 57k students-68 school sites 79k students-88 school sites 30k students-42 school sites 35k students-42 school sites
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Purpose
Plan for Budget Options for 2009-10 and beyond to continue to provide exceptional Learning Environments and remain Fiscally Solvent Develop strategies for the options to be considered Study ALL District real property Assets and K-12 School Sites for cost reduction, revenue generating potential, and improved learning environments To receive Board Approval to engage Stakeholders in Five Step Decision-Making Process for decisions regarding options
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Five Step Decision Making Process
Implemented by Board August 2005
Phase I: Board gathers perspectives, ideas on needs, and challenges Phase II: Board seeks to clarify and fully understand information received in Phase I. Board initiates the generation of creative options.* *Possible solutions that would require a Board decision Phase III: Board provides opportunity for public input prior to evaluating options. Board evaluates options presented by public, staff, and individual Board members. Phase IV: Board discusses options prior to making a decision. Board makes decision. Phase V: Board publishes and implements decision(s) reached in Phase IV. 7
Where are we in the Process?
Phase I: Board gathers perspectives, ideas on needs, and challenges Since 2006 the Board, staff and public have discussed Asset Development and maximizing school site utilization at various meetings. Phase II: Board seeks to clarify and fully understand information received in Phase I. Board initiates the generation of creative options.* *Possible solutions that would require a Board decision Through Board meetings, Workshops, Facilities Committee meetings and Special meetings staff has provided information and created options. (September & October 2008)
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Where are we in the Process?
Phase III: Board provides opportunity for public input prior to evaluating options. Board evaluates options presented by public, staff, and individual Board members. Staff is seeking Board authorization to proceed with Phase III work.
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District Properties Options for Alternative Use
Options
Commercial Rental Current rates*
$1.00-$2.00 per square foot ($3.00 high end)* Average Class room is just under 1000 sq. feet. 1 classroom rental=$12,000 K in net revenue 100 classrooms =$1,200,000
Decentralized SCUSD Services Increase Community Services to Neighborhoods *Keller-Williams Commercial Real Estate (local)
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District Properties Options for Alternative Use (con’t.)
District Property Pros Options
Serna Center Marian Anderson Old Marshall 16th and N 8th and V Fremont Trans/Warehouse Maintenance/Ops Florin-Tech Rent Options Lease/UCD Rent/Dev. CUC/Dev. Dev. Dev. Dev/CSUS Dev. City/Dev/Dist
Cons
Some relocation needed Program relocation Market/program Market Market/program Market/program Market Market/program Market/improvement costs
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Tools Used to Study School Site Utilization
Tools
Matrix of School Site Characteristics District Cluster Maps Facility Capacity Study Enrollment Projections and Trends Study City and County Development Study Neighborhood Trends & Needs (to be developed by community engagement)
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School Site Utilization – Current Status
24 K-12 sites with 350 or less students, each site consolidation reduces expense by approximately $500 K 50 K-12 sites with considerable excess capacity
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(insert five cluster maps)
NORTH
Adobe Acrobat 7.0 Document
WEST
CENTRAL
EAST
SOUTH
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School Site Consolidations & Re-Use
Purpose: To engage communities in discussion of utilization options & community needs for re-use School Site Facility Use Considerations Provide equity and access Increase student achievement Enhance school program opportunities Increase revenues and decrease expense ENHANCE LEARNING ENVIRONMENT
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Revenue Generation & Neighborhood/Community Enhancement Options to Expand District Services
Options
Nutrition Services Pupil Services Information Technology Services Intervention and Tutoring Services Adult Education Classes/Admin/ROP Alternative Education Classes Child Development Services Testing & Assessment Services
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Revenue Generation & Neighborhood/Community Enhancement Options to Expand District Services
Provide Access for Post-Secondary Education Governmental Agencies
City (meeting scheduled with city regarding lease/rent opportunities next week) County State
Community Based Organizations Private Sector-Compatible Uses
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Timeline for 5 Step Decision Making Process
Phase I: Sep – Oct Phase II: Oct – Nov Phase III: Nov 20th Board Meeting
Phase III: Cont. Nov – Jan
Board Study of Asset Options Clarify Options Board gives Direction to engage stakeholders Meet with community stakeholders to discuss, review, identify options Board reviews input, considers options, and makes decisions. Board publishes decisions Actions and Transition planning begin
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Phase IV: Jan – Feb
Phase V: Feb – Mar
Board Discussion
Discussion of options and next steps to provide directions for community engagement.
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